Battered by the fall’s declines in luxury spending, Saks Inc. plans to eliminate 1,100 jobs, or 9% of its work force, and slash its capital expenditures. Last month, Saks’ same-store sales dropped 20%, much worse than the 10% expected by analysts. WSJ

Saks Fifth Avenue

Saks’ Spring 20009 catalog.

In an effort to save between $100 and $125 million in costs, Charming Shoppes Inc., which operates Lane Bryant and Fashion Bug stores, is going to cut 225 positions, close up to 100 stores and discontinue the Lane Bryant Women catalog. AP/ Forbes

California’s Consumer Product Safety Improvement Act, which passed last year, goes into effect on Feb. 10. It bars the sale of goods aimed at children 12 and under that contain more than 600 parts per million of lead. Retailers and small business owners are scrambling to test and certify clothing. Many clothing makers told the Los Angeles Times that they didn’t hear about the new requirements until last month, spurring a last minute effort to get stock tested before the deadline. In addition to slow retail sales, some business owners may have to spend up to $20,000 to get their clothing lines tested. LAT

As consumers have cut back on shopping, they’ve shown a preference for brands when they do buy. As a result, private-label apparel sales are suffering. Analysts say private-label product are usually too boring or safe to appeal to picky customers at this time. Reuters / Guardian UK

American Eagle Outfitters Inc. is bracing for 2009 by limiting expenses and lowering capital spending to $110 to $135 million, down from the $250 – $275 million it spent in 2008. It will not open any new Martin + Osa stores and expect negative same-store sales across their divisions. AP / Forbes

Duncan Edwards has been tapped to run Hearst Corp.’s international magazine division, succeeding George Green, who held the post for more than 19 years. WSJ